Different levels of management

Top-level management

• Top-level managers require an extensive knowledge of management roles and skills.
• They have to be very aware of external factors such as markets.
• Their decisions are generally of a long-term nature.
• They are responsible for strategic decisions.
• They have to chalk out the plan and see that plan may be effective in future.
• They are executive in nature.

Middle management

• Mid-level managers have a specialized understanding of certain managerial tasks.
• They are responsible for and carrying out the decisions made by top-level management.
• They are responsible for tactical decisions.

Lower management

• This level of management ensures that the decisions and plans taken by the other two are carried out.
• Lower-level managers’ decisions are generally short-term ones.

 

 

 

 

Four General Kinds of IS 

• Operational-level systems
  • support operational managers by monitoring the day-to-day’s elementary activities and transactions of the organization.  e.g. TPS.
• Knowledge-level systems
  • support knowledge and data workers in designing products, distributing information , and coping with paperwork in an organization.  e.g. KWS, OAS
• Management-level systems
  • support the monitoring, controlling, decision-making, and administrative activities of middle managers. e.g. MIS, DSS
• Strategic-level systems
  • support long-range planning activities of senior management.  e.g. ESS

OPERATIONAL SUPPORT SYSTEM

Transaction processing system (TPS):

A TPS collects and stores information about transactions, and controls some aspects of transactions. A transaction is an event of interest to the organisation. e.g. a sale at a store.

  Computerized system that performs and records the daily routine transactions necessary to conduct the business; these systems serve the operational level of the organization 

• TYPE: Operational-level
• INPUTS: transactions, events
• PROCESSING: updating
• OUTPUTS: detailed reports
• USERS: operations personnel, supervisors
• DECISION-MAKING: highly structured

 

EXAMPLE: payroll, accounts payable

 

 

Office automation system (OAS) :

OAS provides individuals effective ways to process personal and organisational data, perform calculations, and create documents.
e.g. word processing, spreadsheets, file managers, personal calendars, presentation packages
For are used for increasing personal productivity. They reduce “paper warfare”. OAS software tools are often integrated (e.g. Word processor can import a graph from a spreadsheet) and designed for easy operation.

Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to increase the productivity of data workers in the office. 

• TYPE: Knowledge-level
• INPUTS: documents, schedules
• PROCESSING: document management,  scheduling, communication
• OUTPUTS: documents; schedules
• USERS: clerical workers

 EXAMPLE: document imaging system

 

MANAGEMENT SUPPORT SYSTEMS

Management information system (MIS) :

It converts TPS data into information for monitoring performance and managing an organisation. Transactions recorded in a TPS are analyzed and reported by an MIS.

They have large quantities of input data and they produce summary reports as output. Used by middle managers. An example is an annual budgeting system.

information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. 

• TYPE: Management-level
• INPUTS: high volume data
• PROCESSING: simple models
• OUTPUTS: summary reports
• USERS: middle managers
• DECISION-MAKING: structured. to semi- structured.

EXAMPLE: annual budgeting

 

Decision support system (DSS):

It  helps strategic management staff (often senior managers) make decisions by providing information, models, or analysis tools. For support of semistructured and unstructured decisions (structured decisions can be automated). Used for analytical work, rather than general office support.

They are flexible, adaptable and quick. The user controls inputs and outputs. They support the decision process and often are sophisticated modelling tools so managers can make simulations and predictions.

 Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi- structured and unstructured decision making. 

• TYPE: Management-level
• INPUTS: low volume data
• PROCESSING: simulations, analysis
• OUTPUTS: decision analysis
• USERS: professionals, staff managers
• DECISION-MAKING: semi-structured

 

EXAMPLE: sales region analysis

  Characteristics of Decision-Support Systems

1. DSS offer users flexibility, adaptability, and a quick response.

2. DSS operate with little or no assistance from professional programmers.

3. DSS provide support for decisions and problems whose solutions cannot be specified in advance.

4. DSS use sophisticated data analysis and modelling tools.

 

Executive information system (EIS):

Also known as an Executive Support System (ESS), it provides executives information in a readily accessible, interactive format. They are an MIS for executive use. An EIS/ESS usually allows summary over the entire organisation and also allows drilling down to specific levels of detail.

Used by top level (strategic) management. They are designed to the individual. They let the CEO of an organisation tie in to all levels of the organisation. They are very expensive to run and require extensive staff support to operate.

Information system at the strategic level of an organization that address structured king through advanced graphics and communications.

TYPE: Strategic level

• INPUTS: aggregate data; internal and external
• PROCESSING: interactive
• OUTPUTS: projections
• USERS: senior managers
• DECISION-MAKING: highly unstructured

 

EXAMPLE: 5 year operating plan

 

 

 

Classification of IS  by Functional Area

• The accounting system information
• The finance information system
• The manufacturing (operations, production) information system
• The marketing information system
• The human resources information system

 

 Sales & Marketing Systems

• Systems that help the firm identify customers for the firm’s products or services, develop products and services to meet customer’s needs, promote products and services, sell the products and services, and provide ongoing customer support.

 
 

Manufacturing and Production Systems

• Systems that deal with the planning, development, and production of products and services and with controlling the flow of production.

Finance and Accounting Systems

• Systems that keep track of the firm’s financial assets and fund flows.

Human Resources Systems

• Systems that maintain employee records; Track employee skills, job performance, and training; And support planning for employee compensation and career development.